Cuscal Raises A$30 Million Placement to Fund Paymark Acquisition

Capital Raise Secures Paymark Acquisition Funding

Cuscal Limited (ASX:CCL) has completed a fully underwritten institutional placement raising A$30 million to bankroll its acquisition of New Zealand payments provider Paymark Limited. The placement involved issuing around 7.5 million new shares at A$4.00 each, representing a 5% discount to Cuscal’s last closing price of A$4.21. This discount also compares to a 3.9% markdown from the five-day volume-weighted average price (VWAP) of A$4.16.

The strong backing from both existing shareholders and new investors underscores confidence in Cuscal’s strategic move. Managing Director Craig Kennedy highlighted Paymark as a "strategically aligned opportunity" with "strong standalone economics" and minimal integration needs, aiming to deliver sustainable returns over the long term. Settlement of the placement shares is expected on 17 April 2026, with trading commencing on 20 April.

Share Purchase Plan Offers Additional Equity Option

Alongside the placement, Cuscal is launching a non-underwritten Share Purchase Plan (SPP) targeting up to A$3 million from eligible shareholders in Australia and New Zealand. The SPP allows shareholders to subscribe for up to A$30,000 worth of shares at the lower of the placement price or a 1.5% discount to the five-day VWAP leading up to the SPP close. While the SPP is not guaranteed to raise the full A$3 million due to potential scale-backs, it offers retail investors a cost-free opportunity to increase their holdings.

Strategic Expansion Following Recent Growth

This capital raising follows Cuscal’s recent acquisition of Indue Limited, which boosted its profit after tax by 76% in the first half of FY26 and raised its full-year outlook. The Paymark deal, valued at A$27 million cash, is expected to be accretive to earnings in FY27 and expand Cuscal’s footprint across the Tasman. The acquisition will add scale and geographic diversification with minimal integration required, complementing Cuscal’s existing payments infrastructure. This builds on Cuscal’s trajectory as a leading player in Australian payments, as detailed in its earlier trans-Tasman acquisition announcement.

Notably, the placement was executed within Cuscal’s existing ASX placement capacity, avoiding the need for shareholder approval and enabling swift capital deployment. The company retains discretion over the SPP scale-back and oversubscriptions, reflecting a cautious approach to managing capital structure amid ongoing integration and market conditions.